Summary
Federal Reserve Chair Jerome Powell stated that another interest rate cut by the end of the year is not guaranteed, which highlights disagreements among Fed members. While some policymakers want more rate cuts to support the economy, others are worried about ongoing inflation. This division became clear during a recent policy meeting and has impacted market expectations about future rate decisions.
Key Facts
- Jerome Powell said that a December rate cut is not guaranteed.
- There is disagreement in the Federal Reserve about cutting interest rates, with some concerned about inflation.
- Market expectations for a December rate cut decreased from 88% to 71% after Powell's remarks.
- A policy group that worries about inflation has been particularly vocal against more rate cuts.
- In recent meetings, policymakers have been split on the issue of further rate cuts.
- Reserve bank presidents from Cleveland, Kansas City, St. Louis, and Dallas have voiced concerns about inflation risks.
- Only two out of these four reserve bank presidents currently have voting power on the committee.
- Notably, there have been recent cases of Fed members dissenting in opposite directions on rate cuts at the same meeting.
